To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution approving citywide Utility Billing adjustments as a result of the February 2021 winter storm.
Background:
During mid-February, the State of Texas experienced a historic winter storm that resulted in several days of severe freezing temperatures along with snowy, icy conditions. The storm resulted in the loss of electricity for a significant portion of the State and subsequently led to water distribution concerns. Due to the cold temperatures, utility customers needed to drip faucets in order to prevent pipes from freezing. Frozen pipes can burst causing catastrophic damage to households and businesses due to the water leakage which occurs.
Staff has analyzed Utility Billing Cycle 1 February usage and found the average residential consumption increased by 1,784 gallons or 35.8% from the prior year. It is assumed Cycle 2 will see a similar increase when the data is collected. Since customers needed to use additional water to protect their home and businesses and to help minimize further impact to the city system, the City is proposing a credit that is the equivalent of 2,000 gallons on all non-irrigation utility billing accounts which will be applied on their next bill. In addition, the City is proposing to calculate residential winter-averaging for wastewater volume on two months rather than three, which will remove the winter-storm usage from the calculation. For Cycle 1 residential customers, the winter averaging calculation dates will be from 11/20/20-1/21/21 instead of 11/20/20-2/22/21. For Cycle 2 residential customers, the winter averaging calculation dates will be from 12/10/20-2/10/21 instead of 12/10/20-3/10/21.
Financial Impact:
The total cost of providing a credit of 2,000 gallons is approximately $100,750 or 0.5% of budgeted water sales. The removal of February from winter averaging should be relatively neutral since the rate model anticipated average winter average usage of 6,153 and the two-month average winter usage is 7,165.
Citizen Input/Board Review:
N/A
Legal Review:
N/A
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Approve a resolution providing a credit of 2,000 gallons and calculating winter-averaging on two months.